You personally would be a shareholder of the developement and yes, you would not be an active member.That does make some sense.

Then I fund the SDIRA by transfering money from my existing IRAThen I set up an S Corp (Object of S Corp is to flip houses and occasional buy and hold, I will be taking a reasonable salary and the flow through goes to dividends thereby reducing some of the taxes vs an LLC.)The SDIRA will purchase the majority of shares of the SCorp thereby funding it's operations.Aside from being careful of the Corporate requirements (register dba name, holding shareholder meetings, annual reports, filings ect.)  

If you are going to be the only owner of the business then it's unlikely you'll trip some of the S Corp requirements (as many of them relate to who can be a shareholder and limitations on having multiple classes of securities) but make sure you understand them generally and confirm the restrictions fit within your business plan. 

S Corps and Partnerships distribute "distributions" which generally speaking aren't taxable as long as the partner/member/shareholder has tax basis in excess of the distribution.The tax on Box 1 ordinary business income can't be deferred via IRC Sec 1400Z-2.

Also, investors in REITs are 'shareholders' as opposed to 'limited partners'.  

Ordinary Income.It will pass It will flow through to the Form 1040 to Line 17.The LLC will default to be treated as a partnership as there is more than one shareholder UNLESS all parties agree to have the entity taxed as an S-corporation(Form 2553) or a C-corporation(Form 8832) as long as it is timely filed.

It is the C-Corporation that pays dividends to shareholders, not theS-Corporation.Cash paid to S-corporation shareholders, in general, is called a distribution.

This is business, where every party has the goal of shareholder value maximization and no one has the responsibility to look out for your best interests besides you. 2.

While you can use this tool to build the retirement plan (which will be a shareholder of the corporation), this really more about capitalizing the business and less about tax-sheltered gains for the retirement plan.Bottom line is you should get on the horn with a couple of experts in this field who can discuss what your real situation and goals are and make a recommendation.  

Shareholders have nothing, regardless of how much $ they spent on the stocks.